Houston multi family market?

Question

Cody L. · Answer

YES.

I've looked at many markets, Houston seems by far the best.  I've been buying on average one new multifamily a quarter for years now.  There are still deals out there (I have ~200 units in the pipeline) but they're getting harder and harder to find unless you're a proven buyer.  At that point, brokers with off market / pocket listings will send you deals.  Otherwise you're browsing on loopnet (or HAR god help you)

Michael Le · Answer

@Whitney Holt, I buy larger multifamily properties (70+ units) so it's almost always brokers. Sometimes it's off-market, sometimes semi off-market, and most times they are listed properties. The balance starts shifting the more you do as brokers start bringing you more deals.

Michael Le · Answer

The answer is it depends. I grew up here and I love living here. But like any other city, it's not for everyone. But definitely a relatively cheap place to raise a family. As for investing in multifamily properties, it also depends. What's your criteria? What's your experience? What size properties? Do you plan to go it alone or partner up? Are you only looking within Houston?

Cody L. · Answer

Find a "good" deal, not a "great" deal on HAR or Loopnet.  There are plenty where the numbers still work.  You're just not getting them at a discount as if you were an 'insider'.  Then next time you bid on something, you have a closed property on your bio.   Then start emailing the brokers that are listing stuff on sites like loopnet.  Tell them you're an active buyer.  Tell them what you closed on.  What your financing is like. What you can realistically take down.  What you require that might be less than others (less DD time, more EM, etc.).   The deals will start coming to you.

Account Closed · Answer

Lived in Houston for 12 years, Greenspoint and Jersey Village area. Too much flooding and the crime was bad, but that could have just been in my area.

Got married and moved to the Austin area to raise my family, and it was a good move.

Wish I had the money for apartments. I have apartment leads but can't afford them.

Good luck to you

Cody L. · Answer

Depends on where they're at.  The closer they are to midtown/montrose, the smaller project I'm willing to do.  The further away they are, the larger they need to be to be worth doing (unless they're right by some other properties of mine.

Ideally, if inside the loop but not in Midtown/Montrose, they'd be 60+ unit.  If outside the loop but inside beltway 8, 80-100+ units.  If outside beltway 8 then it needs to be really big or I need to be getting a great deal since I don't have anything way out there (inner loop snob).

Ernest D. · Answer

Hey @Cody L.., what size units is it that you're buying?

Cayce Baierski · Answer

@Edwin Gutierrez outside of Houston, I've heard Lake Jackson is great for rental properties. I think @Cody L. is right, I just finished my first flip and want to get into a multifamily unit next for some cash flow, but I am having trouble finding good deals as the ones that are listed on sites like HAR are so competitive it drives the price up. I think Cody's method of being a proven investor is great, but not sure how I can get started when the good deals are so picked over.

Whitney Holt · Answer

I'd also like to follow this thread. I was flipping houses and acquiring rentals (did 5 properties total in 2016) in San Antonio for a while but am moving back to Houston in June and would like to pick up more of the same there.

Michael, have you found your leads off realtors, wholesalers, or do you do your own direct mailing? What parts of town have you worked in?

I'd like to ideally do a duplex or triplex somewhere inside 610.

Houston multi family market?

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